INR hits fresh all-time low of 95.96/ US dollar

PTI mumbai

The rupee weakened to a fresh record low of 95.96 before closing with a marginal gain of two paise at 95.64 against the US dollar on Thursday. The local unit resisted pressure from a firm American currency and inflation worries amid elevated energy prices.

Forex traders said the West Asia crisis and the blockade of the Strait of Hormuz have disrupted crude petroleum imports into India. Furthermore, the sharp rise in crude prices has made fuel imports costlier. The rupee has become the worst-performing currency in Asia for the year, registering a loss of over 6% so far in 2026 as elevated crude oil prices, a strong dollar and concerns over the West Asia crisis weighed on investor sentiments, traders said.

Jateen Trivedi, the LKP Securities research analyst, said the rupee initially weakened but later recovered sharply following reports of a proposal to reduce taxes for foreign investors in an attempt to support capital inflows and stabilise the currency. "If concrete policy steps are implemented to bring back foreign investor participation, the rupee may find stronger support despite ongoing pressure from elevated import bills and global uncertainty," Trivedi said. He expected the near-term rupee range to be between 95.25 and 96.00.